The Pakistan Credit Rating Agency (PACRA) has maintained the Insurer Financial Strength (IFS) rating of Adamjee Life Assurance Company Limited (ALAC) at "A" (Single A). The rating denotes ALAC's strong capacity to meet policyholder and contract obligations. At the same time, risk factors are moderate, and the impact of any adverse business and economic factors is expected to be limited.
The rating reflects Adamjee Life's association with financially sound business groups - Nishat and Hollard. The rating draws comfort from the sponsors' long established presence in the local and international markets. Meanwhile, established business relationships and extensive outreach of its group companies, mainly Adamjee Insurance and MCB Bank, would help ALAC in developing its client base. As the company is in its development phase, its ability to build strong internal controls, requisite IT infrastructure, efficient systems and procedures, and sound business policies is important.
The company: Adamjee Life Assurance Company Limited (ALAC) is a newly set-up life insurance company operating in Pakistan. The company, starting in 2009 is a partnership between Adamjee Insurance (55%), from Pakistan and Hollard Insurance (45%), from South Africa. Starting with life insurance schemes, the company intends to gradually build a large range of products, including Group Life, Savings/ Investments, Credit Life and Health cover.
The company's BoD comprises seven members, including the CEO of the company. There are three directors each from the two main sponsors ie Adamjee and Hollard, while one director is independent. Fredrik de Beer is the Chief Executive Officer of ALAC. He has over two decades of experience in various industries, including insurance. ALAC has a young workforce educated from local and foreign institutions.
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honour its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA's opinion is not a recommendation to purchase, sell or hold a security in, as much as it does not comment on the security's market price or suitability for a particular investor.-PR
Comments
Comments are closed.